Default Mortgages: Getting a Mortgage with Defaults on Your Credit File
Having defaults on your credit file doesn't mean homeownership is out of reach. Many specialist lenders consider applications from borrowers with defaults, and with the right guidance, you can find mortgage options that work for your situation.
Content reviewed: 13 January 2026
Default Mortgages at a Glance
- •Yes, you can get a mortgage with defaults - specialist lenders consider applications
- •Satisfied defaults are viewed more favourably than unsatisfied ones
- •Defaults over 3 years old have less impact on applications
- •Utility defaults are treated less severely than financial defaults
- •Expect to need a 15-25% deposit depending on your situation
What is a Default?
A default is registered on your credit file when you've significantly fallen behind on payments to a creditor. This typically happens after 3-6 months of missed payments, when the lender closes your account and registers the default. Once registered, a default stays on your credit file for 6 years and can significantly impact your ability to borrow.
Satisfied Default
A default that has been paid in full. Shows as "satisfied" on your credit file and is viewed much more favourably by lenders.
Unsatisfied Default
A default that remains unpaid. More challenging for mortgage applications as it suggests ongoing financial issues that haven't been resolved.
Types of Defaults and Their Impact
Defaults on credit cards, personal loans, car finance, or other financial products are taken most seriously by mortgage lenders. These suggest previous difficulties managing credit and will typically require specialist lending solutions.
Defaults on gas, electricity, water, or telecoms bills are generally viewed less seriously. Some lenders may overlook small utility defaults, especially if they're satisfied. However, multiple utility defaults can still be a concern.
The older the default, the less impact it has on your application. Defaults over 3 years old are viewed more favourably, and after 6 years they're removed from your file entirely. Recent defaults (under 12 months) significantly limit your options.
Deposit Requirements with Defaults
| Default Situation | Typical Deposit | Lender Availability |
|---|---|---|
| Satisfied, 3+ years old, utility only | 10-15% | Many lenders including high street |
| Satisfied, 2-3 years old | 15-20% | Specialist and some high street |
| Satisfied, 1-2 years old | 20-25% | Specialist lenders |
| Unsatisfied or under 1 year old | 25-30% | Limited specialist lenders |
| Multiple defaults or high value | 30%+ | Very specialist lenders |
How to Improve Your Chances
Satisfy Outstanding Defaults
Paying off your defaults shows lenders you've addressed your past issues. Satisfied defaults open up more lending options and better rates.
Build Recent Good Credit
Demonstrating responsible credit management since the defaults occurred strengthens your application. Keep current accounts up to date and avoid new negative marks.
Save a Larger Deposit
A bigger deposit reduces the lender's risk and opens up more options. Even an extra 5% can make a significant difference to your available products.
Use a Specialist Broker
Specialist brokers know which lenders consider default applications and can present your case in the best light. They have access to lenders not available directly.
Frequently Asked Questions
Yes, many specialist lenders consider mortgage applications from borrowers with defaults. Your options depend on factors like how old the defaults are, whether they're satisfied, and your overall credit profile.
Defaults remain on your credit file for 6 years from the date of registration. After 6 years, they're removed automatically. Most lenders become more flexible after 2-3 years if the defaults are satisfied.
A late payment is when you pay after the due date but within a reasonable period. A default is registered when you've missed payments for an extended period (usually 3-6 months) and the lender has closed your account. Defaults are more serious on your credit file.
Satisfying (paying off) your defaults significantly improves your mortgage options. Many lenders require defaults to be satisfied before they'll consider your application, especially for larger loans.
Typically 15-25% deposit is needed with defaults, though this varies. Older, satisfied defaults may only need 10-15%, while recent or multiple defaults may require 25% or more.
Utility defaults (gas, electric, water) are generally viewed less seriously than financial defaults (credit cards, loans). Some lenders may overlook small utility defaults, especially if satisfied, while still considering your application.
Related Topics
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Declined Mortgages
Been refused elsewhere? Discover specialist options for applicants who've been turned down.
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Jay Sabine
Expert mortgage adviser specialising in complex cases including adverse credit, self-employed borrowers, and first-time buyers. All advice is tailored to your individual circumstances.
Content reviewed: 13 January 2026